Bayern Munich are poised to swoop for the Chilean international who only has one more year left to run on his Gunners deal.
Sanchez has been offered £270,000 a week by the Gunners but his advisors are sticking to their guns and demanding he is made the highest paid player in the Premier League.
They want a deal of around £350,000 a week and believe that they are in a strong position with interest in the play maker from Bayern, Chelsea and Manchester City.
Sanchez is willing to stay with The Gunners next season which would then allow him to walk away from the club as a free agent this time next year.
Alexis Sanchez is willing to stay Arsenal if they can make him the highest paid player in England Where could Alexis Sanchez go next? Thu, March 30, 2017
Where could wantaway Arsenal striker Alexis Sanchez go next?
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Where could Alexis Sanchez go next if he leaves Arsenal?
Alexis Sanchez is set to have showdown talks with Arsene Wenger
Wenger recently claimed he is confident both Mesut Ozil and Sanchez will remain at the club next season.
"This summer first of all they will stay at the club – hopefully they can extend their contracts," he told beIN SPORTS.
“You cannot weaken the club and the team – unless you find a player of the same calibre.
“I believe at the moment we are not at that point. We are just focused on keeping the team together and see how to strengthen the team.”
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Arsene Wenger will meet with Alexis Sanchez to discuss the player's future
Meanwhile Wenger is also facing crunch talks with another Arsenal star Jack Wilshere who is fighting to save his career at the Emirates Stadium.
The injury prone England international is out of contract at the end of next season and is yet to be offered fresh terms by The Gunners.
He spent last season out on loan at AFC Bournemouth until his season was cut short after breaking his leg against Tottenham.